Managing Your Finances Your Money & Banking Name_______________ Block_

Managing Your FinancesYour Money & BankingName_________________ Block___

Do Now: What kind of services do banks typically provide?

Banking Basics By the end of this block you should have an understanding of personal banking services and how they can benefit you

You will learn more about • Types of Services provided by Banks • Different Types of Banks - (Financial Institutions) • How to select a financial institution • How to open an account • Banking Products, Services and Fees • How a Debit Card is tied to Checking/Savings Account • How that Debit Card works

So, what types of services do banks offer? A bank is a company that works with the money that the people give it. If you give your money to a bank, it not only protects it but pays you interest.

So, what types of services do banks offer? You can manage your money by opening up the following types of accounts: • Savings Accounts: designed for you to save your money (pays a higher rate of interest than checking accounts)

So, what types of services do banks offer? You can manage your money by opening up the following types of accounts: • Checking Accounts: designed to enable you to write checks and pay your bills.

So, what other types of services do banks offer? Banks also provide: • Loans to qualifying customers • Safe deposit lockers/vaults • Sell insurance products • Sell investments (like mutual funds)

Advantages of Checking & Savings Accounts • Your money is safe • Each account is insured (up to $100,000) • Checking account records provide proof that you paid bills and help you keep track of spending • Money in a savings account earns interest to help it grow. • Less expensive than check-cashing stores and money orders.

What is the difference between a bank and a credit union?

Banks • Banks are financial institutions that take deposits, engage in lending and operate for a profit. • Banks offer checking and savings accounts to the general public.

Credit Unions • Credit Unions are financial cooperatives that are owned by and serve individuals with common affiliation. • For example, a workplace, church, employees union, etc. • Credit Unions offer checking and savings accounts to members. • Example, ABCO Federal Credit Union

What kinds of things can you do with a checking account?

Checking Accounts • Checking accounts allow you to: • Pay bills with checks/online bill pay • Get cash, transfer money and make purchases using your debit card. (You can also use debit card to pay without cash at shops, gas stations and other stores.)

How can you gain access to your money? • At an ATM (Automated Teller Machine) • On your computer (online banking) • By phone or using a data-ready mobile device (mobile banking) • This allows you to transfer funds or pay bills

Online Banking - (Internet Banking) • You use a secure website operated by your financial institution (or via an “app”) • Pay bills, view transactions, transfer funds between accounts • Benefits: • Convenient, Low or No Account Fees, Quick Access to information, savings on checks (buying checks) and postage (to mail bills)

Safe Online (Internet) Banking • Make sure the institution is legitimate (do your homework and research) • Create a strong password (avoid birthdays, 1234, pet’s name.) Should have at least 8 numbers and characters (both upper and lower case) • Keep your ID and Password private

Safe Online (Internet) Banking • Do not fall for phishing (online scams) • Be careful when using public wireless networks (Wi-Fi) or shared computers • Monitor your account on a regular basis

Keep Your Checking Account Fees “In Check”! • Shop around for free or low-cost checking accounts • Some banks offer: • e-Accounts • Student Accounts

Debit Cards • You can use your debit card by entering a personal identification number (PIN) at an ATM (Automated Teller Machine) • The amount that you enter, immediately comes out of your account.

Debit Cards-cont. • You can use that Debit Card at most retailers through a Point-of-Sale (POS) terminal. • Wawa, Hollister, Target, Shoprite • You may be asked to sign a receipt because the card is often treated like a credit card (VISA logo)

How is a savings account different from a checking account?

Savings Accounts Earns Interest • Interest is paid by a bank when you keep your money in a savings account. • Savings Products • Statements – You maintain records • Savings Deposits • Savings Withdrawals

Opening an Account • Questions to ask: • What is the minimum amount needed to open an account? • Is there a monthly fee? • Is there a way to avoid (or waive) the monthly fee? • How many checks can I write a month?

Opening an Account-cont. • Questions to ask: • Do you have free online banking? • Are there ATM fees? • What happens if my balance falls below the minimum balance requirement? • What is the cost a returned (or bounced) check?

What should you bring with you when you are opening a new account?

Required Documents • When you go to the financial institution or open account online you must provide: • Photo identification, such as a driver’s license or passport • Proof of your address, such as a utility bill or lease agreement (think of New Jersey’s Six Points System of ID to replace or get your Driver’s License) • Your Social Security number for tax purposes

Access the following websites and complete the Comparing Checking Accounts Worksheet. • http://www.tdbank.com/accountguides/Student.pdf • https://www.wellsfargo.com/checking/compare-accounts/?ss=email

Managing Your Finances Your Money & Banking Name_______________ Block_